The chief executive of TSB has welcomed the £775 million set aside by RBS for so-called ‘challenger banks’ as a “once in a generation opportunity to break the shackles” of the big banks, The Herald reports.

RBS is distributing the cash instead of selling its Williams & Glyn network, as demanded by EU competition rules.

The £775 million takes the form of an independently-administered £425 million Capability & Innovation Fund to award 15 grants between £5-120 million to challenger banks, and £350 million to help up to 120,000 SMEs move their accounts from Williams & Glyn to challenger banks.

TSB’s Paul Pester said: “The £775 million put aside by RBS is a once in a generation opportunity to really break the shackles the big five banks have had on small business banking for so long.

“Imagine the impact one of the largest grants could have in the hands of TSB – Britain’s challenger bank that has already shown its credentials in bringing more competition to the retail banking market in the UK.”